Tax filing season is here, so you need to prepare yourself. There’s a lot to unpack for this season, so let’s dive in so you’ll be ready to file your taxes and get a refund.
When’s the Last Day to File Taxes?
If you run an S corporation or partnership, the last day to file taxes is March 15, 2021. Corporate and individual tax returns are due by April 15, 2021. If you don’t have time to finish by the deadline, you can file for an extension. While that gives you extra time, it doesn’t provide additional time to pay any money you owe. Failing to pay by the filing deadline could lead to interest and penalties.
How Early Can You File Taxes?
You don’t have to wait until the last minute to file your taxes. The IRS has not announced the date they will begin accepting online returns. It can still be as early as January 15, 2021, or as late as February 1, 2021.
How to Fill Out a W-4
Your W-4 tells your employer how much in taxes to withhold from your paycheck. You have to fill out a W-4 when you start a new job, and you have the option of updating it with your current employer. The IRS updated the form this year, so you might need some help filling it out. The IRS removed allowances, making it quite a bit different from previous years.
The form includes five steps, and you must fill out step one and step five. If you file taxes jointly with a spouse or have a second job, fill out step two. Fill out step three if you have dependents and step four if you want to withhold additional money. Many people choose to withhold additional funds, so they will be certain to get a large tax refund.
Does Everyone Have to File a Tax Return?
Tax filing is a normal part of life for most people, but some don’t have to do it. Your filing status, age, and income determine if you will have to submit them or not. For example, if you’re single, under the age of 65, make less than $12,400, and don’t have special circumstances, you don’t have to file taxes. That doesn’t necessarily mean you shouldn’t, though. You might receive a refund if you do. That means you could lose money if you don’t do it.
Getting Help with Tax Filing
While you can file taxes yourself, it’s a good idea to use a professional. Tax professionals understand the tax code in and out and can maximize your refund or limit the amount you owe. Also, if you use a professional tax service, you will have protection if you are audited. This can be quite a relief if you receive a letter from the IRS.
Gather your documents and reach out to a licensed tax professional. Then, you won’t have to stress about filing taxes this year.
Did you know that Freeway Insurance can get you the tax help you need? Visit one of our offices near you today and ask about our tax preparation service to get your refund as soon and easy as possible!